Keeping Your Cryptocurrency Wallet Secure

[motun01]

If you're just joining the crypto space,

Or you are already actively investing in digital currencies and you already have some cryptos in your wallet.

Then securing your wallets should've your #1 priority.

so I am going to share my top tip on what you can do to prevent unauthorized access to your funds

1. Write down your backup phrase and Private keys.

Writing down your Backup Phrase and Private Keys is one of the most important steps you can take to secure your wallet.

Your back up phrase contains all the private keys in your wallet, allowing you (or anyone who has it) to restore your wallet and access your funds.

This is meant FOR YOUR EYES ONLY.

Write down your Backup Phrase and keep it somewhere safe offline. Because a cloud storage can get hacked

I Personally use stainless steel dog tags because they are fire and water resistant

If you ever lose or change your device, your Backup Phrase is the only way to regain access to your funds.

Kindly add yours below, lets make this a really educating topic

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[Oyarebu]

Although am not a tech per se but gat these helpful threads for everyone who is interested in the protection of his or her wallet. OP has throw light into the keep cryptocurrency wallet secure and here is the best way to go about that and stay safe also, here's another helpful tip from "Protecting wallet with Access Protection rules" which helped alot and recommend for newbie..

[adekogbe]

Set up Two-Factor Authentication. - This applies to mobile and desktop wallets.
Two-Factor Authentication helps prevent unathorized access to your wallet by requiring a one-time password for every login attempt.
Your password could get bypassed, and may not be as strong as you think, so Its always helpful to have that extra layer of security protecting your funds.

You can set this up in your Security Center using Google Authenticator, Yubikey, or SMS codes.

[olabiyijummy02]

I would recommend that investors diversify their portfolio wallets and try to split their investments between different wallets, because even the safest precautions can sometimes be breached and it is best to not have all your coins or tokens in the same wallet at the same time to avoid losses.

There have been reported cases of hacks where hackers make away with a lot of valuable cryptocurrencies. If all the coins or tokens are not kept in the same wallet then there will be reduction of risks and also reduce the loss.

[whotookmycrypto]

We have written an article on this (click here to view), attached is a summary of it:

1. Get a suitable wallet. 3 key criteria for determining which wallet to choose would be the amounts you invested, coins supported and your usage patterns.

2. Never roll your own crypto. Don’t device schemes or implement security measures beyond your ability. You will fail big time. This happens often when the topic of securing your seed phrase comes up.

3. Guard your seed phrase with like you would your life. Lose this and your funds could go missing. Forever.

4. Avoid using paper wallets. They are theoretically very secure but impossible to safely generate.

5. Use deterministic wallets. Easier for backing up and improves privacy.

6. Do not unlock wallets unnecessarily. The longer such wallets are exposed to the internet, the more likely they are subject to an attack.

7. Compartmentalize your funds into different tiers. Mobile wallets for daily use, hardware wallets for infrequent use.

8. Diversify, diversify, diversify. Areas where you can diversify include using different wallet providers and spreading your funds across multiple wallets.

Did we miss something? Leave us a comment below and we will update the post.

[BitBustah]

Maybe talk more about your physical security and have a plan to defend yourself if an attacker gets violent.  I realize not everyone is up to this sort of thing but it is important to at least think about.  We keep hearing about these investors that are tortured until they give up their private keys.

[jossiel]

Using laminated cardboards would also be good as long as the lamination process is good enough to be a water resistant. It also depends on the card board or paper you will use but the suggestion of OP about dog tag looks good and I'd like to make my own.

Never ever put your private keys or seeds to emails, messaging apps to remember. Don't be lazy with your funds, keep it safe and write it down somewhere to protect your crypto wealth.

[jak3]

Yes!, Backuping your private keys should be your first priority but you can also get private keys with password authentication and imagine backuping that. even if someone found your private key somehow then also they will not be able to use it. I won't suggest any two factorization process because if you are going to lose your phone then there is no point of two factorizing physical private key backups are a very safest option just keep the physical data safe and they can be easily damaged.

[mk4]

4. Avoid using paper wallets. They are theoretically very secure but impossible to safely generate.

I wouldn't say impossible, it's just that most people likely don't have enough knowledge on computers in general to create a paper wallet in a secure manner.

8. Diversify, diversify, diversify. Areas where you can diversify include using different wallet providers and spreading your funds across multiple wallets.

Use a reputable hardware wallet like the Ledger Nano S or the Trezor instead of using multiple software and custodian wallets.

[whotookmycrypto]

Maybe talk more about your physical security and have a plan to defend yourself if an attacker gets violent.  I realize not everyone is up to this sort of thing but it is important to at least think about.  We keep hearing about these investors that are tortured until they give up their private keys.

Thank you for the suggestion. Would take note of this and update subsequently.

I wouldn't say impossible, it's just that most people likely don't have enough knowledge on computers in general to create a paper wallet in a secure manner.

Yes, agreed. However, the expertise required to securely generate such wallets is probably restricted to infosec experts only and not the general public.

Interesting discussion in this thread: https://twitter.com/aantonop/status/978279050438299650

Use a reputable hardware wallet like the Ledger Nano S or the Trezor instead of using multiple software and custodian wallets.

The point was that even if users were using reputable hardware wallets they shouldn't solely rely on one. Not going to name names but there was a recent hardware wallet provider that messed up their software update. Their users had problems updating to the latest version and could not access funds through the wallet.

[Text]

Author's tip is the major practice of protecting and securing your wallet I think. And of course followed it by the back up process.
For me, I don't like using multiple wallets unless it is necessary cause its kinda additional and long process, like remembering where you put this one and that one. So just always turn on the available secure process to protect your funds.
Add alternate email address on your primary email.
Turn on the SMS code/email code if you log in to a new device or IP address (other website already doing it by default especially on exchange sites)
Two Factor Authentication (already given)
Encrypt your wallet (always done in desktop app)
use strong password (combination of alphanumerics, upper and lower case, you can also add symbols; but not all is allowed)

[Sonu_titu]

• I would always prefer using hardware wallets more than any other wallets.
• DO NOT SHARE YOUR PRIVATE KEY WITH ANYONE.
• Avoid storing funds in Custodial exchanges.
• Do activate 2FA
• Keep the 2FA device offline
• Whenever you are logging in into your wallet please check the URL
• Before sending funds double check the address there are malware's that modify the address you pasted in your wallet
• Avoid public Wi-Fi

Store Bitcoin and Cryptocurrencies In Paper Wallets

A paper wallet is actually a piece of paper that has your private and public keys printed on it. Blockchain.info is the best paper wallet out there and it is easy to print and store. But this method provides the least flexibility if you want to spend a small amount on a regular basis. Paper wallets are the best cryptocurrency wallet in 2019 on how to store BItcoin offline.

Store Bitcoin and Cryptocurrencies In Hardware Wallets

How does one store Bitcoin on a USB? Using a hardware wallet. A hardware wallet is usually like a pen drive that stores your private key away from a computer and hence protects against viruses, malware or keyloggers to steal your passwords or private keys. They still provide full ownership of your coins.

Ledger Nano S and Trezor are the most popular hardware wallets and these provide a mix of ease of use and complete ownership. How does one store Bitcoin on a USB? The best bet is one of these two wallets.

Store Bitcoin and Cryptocurrencies In Desktop / Mobile Wallets

These are wallets installed on your desktop or mobile phone that hold your private keys but are not recommended for long term storage. These wallets are as secure as your computer but still vulnerable to attacks if your computer is connected to the internet and has other software installed.

Paper wallets, Desktop/mobile wallets, and Hardware wallets are the ways on how to store cryptocurrencies offline.

You can also read more on this topic in articles like: Best Ways To Keep Your Cryptocurrencies Safe

[mk4]

I wouldn't say impossible, it's just that most people likely don't have enough knowledge on computers in general to create a paper wallet in a secure manner.

Yes, agreed. However, the expertise required to securely generate such wallets is probably restricted to infosec experts only and not the general public.

https://i.imgur.com/D5TGbbt.png

Interesting discussion in this thread: https://twitter.com/aantonop/status/978279050438299650

I have mixed feelings on this. I mean, creating a 100% secure paper wallet is definitely almost impossible(or impossible), but no other wallet or system or anything in general isn't 100% secure. Nothing is 100% secure in the first place. But I think creating a sort of secure-enough paper wallet is going to be possible for people who have extensive knowledge on how operating systems and computers in general work. I get your point though. +1

[Indamuck]

I know this is common sense but the best thing is to have many different wallets in different locations.  You never want to have all your coins on one wallet.  Even if you have the seed on a steel plate located in a vault underground.


I find hardware wallets to be completely Unnecessary, they would be one of the first things targeted if there were any vulnerabilities.  I prefer to use an old laptop that is completely clean and airgapped.  Sign everything offline and use photos of transaction codes.

[whotookmycrypto]

I have mixed feelings on this. I mean, creating a 100% secure paper wallet is definitely almost impossible(or impossible), but no other wallet or system or anything in general isn't 100% secure. Nothing is 100% secure in the first place. But I think creating a sort of secure-enough paper wallet is going to be possible for people who have extensive knowledge on how operating systems and computers in general work. I get your point though. +1

Certainly see your point too. At the end of the day in crypto it's all about being your own bank. As such, user's are free to weigh the trade-offs between solutions and decide what's best for them. This is unlike the current banking systems where security procedures are determined centrally and shoved down the throat of users.

[motun01]

I know this is common sense but the best thing is to have many different wallets in different locations.  You never want to have all your coins on one wallet.  Even if you have the seed on a steel plate located in a vault underground.


I find hardware wallets to be completely Unnecessary, they would be one of the first things targeted if there were any vulnerabilities.  I prefer to use an old laptop that is completely clean and airgapped.  Sign everything offline and use photos of transaction codes.

This is a very good idea, but a lot of newbies don't know how to run a wallet offline and also using hardware wallets can be risky because just like most other electronic devices, it could have a weakness for which hasn't been discovered yet & when it is, this weaknesses cam be exploited.

I prefer paper wallets & desktop wallets

[jseverson]

Maybe talk more about your physical security and have a plan to defend yourself if an attacker gets violent.  I realize not everyone is up to this sort of thing but it is important to at least think about.  We keep hearing about these investors that are tortured until they give up their private keys.

The thing is though, you probably won't get attacked physically if robbers don't know you have any crypto in the first place. Maybe you start with making sure you preserve your anonymity? I mean, I personally wouldn't suggest fighting back against armed attackers, especially because they typically try to outnumber you.

[Baofeng]

How about keeping your desktop/mobile software up-to-date? We all know that hackers first point of entry is those OS that is not updated by the users. So it's also very important to be on the news of software updates otherwise your will be vulnerable to hacks and exploits.

[bob123]

[...]
so I am going to share my top tip on what you can do to prevent unauthorized access to your funds

1. Write down your backup phrase and Private keys.

 

Having a backup does not prevent unauthorized access at all.

This is a tip to increase the safety of your funds, not the security.


A 'real pro tip' to prevent unauthorized access would be to decrease the attack surface (e.g. offlline wallet -> not accessible through internet).
You would 'just' have to secure it from offline access then.

I find hardware wallets to be completely Unnecessary, they would be one of the first things targeted if there were any vulnerabilities.  I prefer to use an old laptop that is completely clean and airgapped.  Sign everything offline and use photos of transaction codes.

That's definitely a good way of storing your coins securely.

But not everyone wants to travel with a second laptop, just to be able to spend some BTC.

A hardware wallet is - by far - not unnecessary.
It is a way to store your coins secure (not as secure as an air-gapped cold storage) while still having the convenience and portability of a mobile wallet.

[TheHas]

Good tip to use dog tags for your crypto seed to avoid fire or water damage.

Although getting it engraved would expose you as well to the person who engraves it for you. They could find out your public key, remember your 24 word seed that they engraved and bam you're in trouble.

Perhaps just a fire and water proof safe box with the seed written on paper would be enough in most circumstances. Keep it manual and simple but secure.